Berong Nickel confident to complete rehab on time, hikes budget by P50M

Berong Nickel Corp. (BNC), a subsidiary of DMCI Mining Corp., on Thursday said it has hiked its budget to rehabilitate the now-depleted nickel mine, with the firm confident it will complete the process within the next four years.

According to DMCI Mining Corp. president Tulsi Das Reyes, the company is now ahead of schedule in terms of the six-year rehabilitation plan which started in the second quarter of the year.

“What we’re doing now is we are still planting and then we have to, we’re continuing benching for the soil stabilization,” he told reporters in a briefing in Makati City.

The rehabilitation of the Berong mine —  one of the two operating nickel mining assets of DMCI Mining — started in June last year and set to be completed in the next four years. It operated in October 2006, and was fully depleted by December 2021.

“If we have to eat up the last four years, we’ll eat up the last four years. If we can turn it over, we’ll turn it over,” Reyes said.

Reyes said the company has also been informed by the Mines and Geosciences Bureau (MGB) that the mine will be showcased as a “commendable final mine rehab plan.”

“So if they’re going to say very nice things to us today, I want to make sure that when they do showcase, it’s as close to perfect as possible. There’s no incentive for us to finish early, so let’s do it right one time,” he said.

The company has now completed 75% of its rehabilitation program for the mine. It already completed 88% of its annual land preparation target of 34 hectares within the first six months of the year.

The Berong mine was also reported to have generated 1,634 direct and indirect jobs, and yielded 10.3 million wet metric tons (WMT) of nickel ore, and P2.6-billion worth of mining duties, royalties, and taxes.

Reyes on Thursday said the company increased the rehabilitation budget by P50 million to account for the difference in fuel prices from 2022.

“That was pre-fuel, so that’s why it ate into our original. That’s why the numbers, you’re gonna see some variance. Fuel is the number one cost, number two, and number three. When we made that (original) mine rehab budget, the fuel prices there were still probably half to that,” he said.

Reyes in September said DMCI Mining Corp. is set to produce record production this year, along with the opening of two new mines in the coming months — one in Zambales in the first quarter, and another undisclosed site in the second quarter.

DMCI Mining posted a P708-million net income in the first semester, reflecting a 35% decline from P1.09 billion due to lower selling prices and increased costs from higher shipments, fuel consumption, depreciation, amortization, and labor expenses.

It also counts as a subsidiary Zambales Diversified Metals Corp. (ZDMC), which was awarded the Presidential Mineral Industry Environmental Award (PMIEA).

DMCI Mining is among the subsidiaries of Consunji-led DMC, along with DM Consunji Inc., DMCI Project Developers Inc., Semirara Mining and Power Corp., and DMCI Power Corp.—RF, GMA Integrated News